The post Man Pleads Guilty to Using AI to Generate $8 Million in Fraudulent Streaming Music Royalties appeared on BitcoinEthereumNews.com.

In brief A North Carolina man pleaded guilty to conspiracy tied to an AI-generated music streaming scheme. Prosecutors say fake accounts generated billions of artificial plays on streaming music services. The case involves more than $8 million in royalty payments. A North Carolina man pleaded guilty Thursday to a federal charge tied to a scheme that used artificial intelligence and automated accounts to collect more than $8 million in music streaming royalties, according to the U.S. Department of Justice. Michael Smith pleaded guilty to conspiracy to commit wire fraud in the Southern District of New York following a yearslong investigation. He agreed to forfeit the royalty payments and faces up to five years in prison. “Michael Smith generated thousands of fake songs using artificial intelligence and then streamed those fake songs billions of times,” U.S. Attorney Jay Clayton said in a statement. Sentencing is scheduled for July 29.  The case comes as AI-generated music tools have become widely available, allowing users to create songs with vocals, lyrics, and instrumentation from simple prompts. Platforms like Suno, Udio, and Google’s Lyria have accelerated production, making it possible to generate large catalogs of tracks at scale. At the same time, the technology has raised questions about copyright, ownership, and how streaming platforms handle AI-generated content. In January, Rolling Stone reported that Smith had spent years pursuing a music career, including charting songs and working with industry collaborators, before investigators tied him to the scheme to manipulate streaming services. Streaming services, including Spotify, Apple Music, Amazon Music, and YouTube Music, distribute royalty payments based on play counts, creating an incentive to inflate streams. “Michael Smith used artificial intelligence and automated bots to create the illusion of popularity—and to collect millions in royalties that belonged to real artists,” said U.S. Attorney Jay Clayton. “Today,…

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Filed under: News - @ March 20, 2026 9:25 pm